Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, MB, June 22, 2016 (CNS Canada) The Canadian dollar strengthened against its US counterpart Wednesday morning, supported by a favourable retail sales report.

Retail sales rose 0.9 per cent to $44.3 billion in April, according to Statistics Canada. The increase follows a 0.8 per cent decline in March. Sales were up in seven of 11 subsectors, representing 64 per cent of total retail sales.

Higher sales at gasoline stations were the main contributor to the gain. Sales at gasoline stations rose for the first time since June, 2015, up 6.0 per cent in April. This increase largely reflected higher prices at the pump.

US stocks opened flat on Wednesday, as investors held off from making big bets a day before Britain’s big decision on whether or not to leave the European Union (EU), benefitting the loonie.

Polls are extremely close, but traders are optimistic Britain will vote to remain in the EU. The vote takes place on Thursday.

At 8:42 CDT Wednesday, the Canadian dollar was at US$0.7838 or US$=C$1.2758, which compares with Tuesday’s North American close of US$0.7806 or US$1=C$1.2811.

The TSX was up 46.23 points, or 0.33 per cent, at 8:42 CDT Wednesday morning to sit at 14,058.55.